JH BIZ Consulting

10/23/2021

Best 5 Accounting Software for Small Business

QUICKBOOKS:Best overall small business accounting software with project, class, and location tracking that can be customized for any industry

ZOHO BOOKS: Best for freelancers, gig workers, solopreneurs, sole proprietorships, and other self-employed business owners

SAGE: Best for consolidating financial statements of multiple companies

FRESHBOOKS:Best for small businesses needing professional-looking invoices and great invoicing features

WAVE: Best free accounting software for businesses needing only basic tracking of income and expenses

09/12/2020

How to Prepare Form 1099-NEC in Four Steps

1. Have All Independent Contractors Complete a Form W-9
2. Track Payments Made to Independent Contractors
3. Complete Form 1099-NEC & Submit to IRS
4. Provide Form 1099 to Independent Contractors & File With IRS

09/12/2020

The Difference Between Sub-Contractors and Employees

A 3 Part Subjective Analysis

There are facts and circumstances most commonly used by the Courts (known as ‘Common law’) to determine the difference between an employee and sub-contractor. It’s a 3 part subjective analysis and some facts may indicate that a ‘worker’ is an employee, while other factors indicate that the worker is actually a sub-contractor. Thus, you need to weigh the issues with your tax or legal advisor to make the right decision and what path you’re going to take. These 3 factors or categories are as follows:

1. Behavior of the ‘worker’ in relationship to your direction and guidance. Does the company control or have the right to control what the worker does and how the worker does his or her job?

2. Financial terms between you and the ‘worker’. What are the business aspects of the financial relationship? Is the worker paid hourly or weekly? Does it look more like pay that an employee would receive? Do you reimburse for expenses and provide the work space, tools and supplies?

3. Type of Relationship in writing AND Understanding. Would your ‘worker’ consider themselves an employee? Could they be fired any particular day? Do you have a sub-contractor agreement in place that clearly indicates the worker is an independent contractor?

The IRS’s Position

The Internal Revenue Service define an employer/employee relationship as one in which the employer controls the workspace, the hours worked, the equipment to be used and directs the daily and weekly activities of the worker.

A Sub-contractor by contrast is one that typically carries their own tools, supplies, bills for their time and/or services, controls their hours worked and serve multiple customers or clients and aren’t supervised or directed by one employer in particular. To help explain these definitions further and provide examples, the IRS created an extremely helpful web page with a number of resources titled

07/01/2020

2020 IRS Tax Filing Deadlines Update: The Dust Settles

Individuals:

Form 1040 Filing Deadline for 2019 extended automatically 90 days until July 15th without penalties or interest.
No Federal tax payments under Form 1040 for 2019 due until July 15th with no penalties or interest.
1st Quarter Estimated Tax Payments for 2020 are automatically postponed for 90 days and not due until July 15th with no penalties or interest.
Health Savings Account (HSA) Contributions (HSA) for 2019, still due July 15th.
Individual Retirement Account (IRA) Contributions for 2019, still due July 15th.
Coverdell (Educational) IRAs for children for 2019, still due July 15th.
Back Door Roth IRA Set-up & Conversion for 2019 must be completed by July 15th.
Self Directed IRA Accounts with UBIT or UDFI in 2019 must still report Form 990-T by July 15th. (an Extension until October 15th can be filed)

Small Business:

Deadline to Fund SEP IRA or Solo 401k Contributions for 2019 extended by 90 days and not due until July 15th, unless a further extension is applied for. (S-Corp owners would have until Sept 15th, if a prior extension was filed before March 16th. Sole-Proprietors would have until October 15th if they apply for another extension on July 15th.

05/23/2020

How do I calculate the maximum amount I can borrow?

The following methodology, which is one of the methodologies contained in the CARES Act, will be most useful for many applicants.

Step 1: Aggregate payroll costs (detailed below) from the last twelve months for employees whose principal place of residence is the United States.

Step 2: Subtract any compensation paid to an employee in excess of an annual salary of $100,000 and/or any amounts paid to an independent contractor or sole proprietor in excess of $100,000 per year.

Step 3: Calculate average monthly payroll costs (divide the amount from Step 2 by 12).

Step 4: Multiply the average monthly payroll costs from Step 3 by 2.5.

Step 5: Add the outstanding amount of an Economic Injury Disaster Loan (EIDL) made between January 31, 2020 and April 3, 2020, less the amount of any “advance” under an EIDL COVID-19 loan (because it does not have to be repaid).

04/30/2020

The City of Chicago has established the Microbusiness Recovery Grant Program that will distribute $5,000 grants to up to 1,000 businesses with four or fewer employees in low- and moderate-income areas of the city that have been severely impacted by COVID-19 and could most benefit from a grant.

https://www.chicago.gov/city/en/depts/bacp/supp_info/smallbusinessresiliencyfundgrantprogram.html?fbclid=IwAR3QA5bDyZON8oMCJ9_PaiDKvlG0hpO7eW9FLoL56c8UdOMk9BpK9gryswA

04/19/2020

$2,000 Monthly Stimulus Check

House Democrats have introduced legislation that would expand the federal government’s coronavirus relief cash payments to $2,000 a month until the economy recovers.On Wednesday, Americans who qualify started getting one-time checks from the Treasury Department of up to $1,200 per adult depending ...

04/15/2020

지금도 가능한, 부자되는 공식

1. 마음먹기=부자 되고 싶은 이유를 알아야 함
: 골목책방 열어서 읽고 쓰는 삶을 원하는 모든 사람이 편히 쉬었다가는 곳으로 만들겁니다.

2. 자기분석=내 성향과 맞는 재테크 찾기위해
1)방정리하며 찾기
:연초에 방정리하면서 옷장에서 택도 떼지 않은 옷을 발견한 후로 올해 목표가 옷 한 벌도 안사기인데 아직까진 잘 지키고 있네요

2)수입지출 확인하기
급여, 지출 완벽하게 파악하기 3개월치 뽑아서..
:두렵다..내 작고 귀여운 월급..ㅎ

3)써요마요리스트(스트레스받지 않는 선에서)
:커피를 좋아해서 카페를 많이 가는 편이라 편의점 커피로 갈아탔는데 맛이.. 차이가... 없어요 ㅎㅎ신기

4)거절멘트 정해두기
"야 나 코인했다" 이걸로 끝

3. 한 달 목표 생활비를 정해라
적금, 펀드, 투자, 대출까지 전부 확인하고 정리
: 삼전과 스벅에 들어간 내 돈 모두 손실! 이런!
(대출이 있다면 지자체에 상담가능)

04/14/2020

Dear colleague,

Please check your bank account by 04/15 if you filed 2018/2019 income tax return with direct deposit.

Thanks

04/13/2020

연방 개인 기초 재난 지원금 최종안

1) 2500불 총 소득 하한선 없어짐에 따라 소득이 아예 없어소 소셜 번호가 있고, 소득세 신고를 하신 분에 기준에 의해
소득세 신고시 기재하신 은행 정보 또는 체크로 발송이 되며, 개인 성인 1인당 1200불, 부양가족 1인당 500불이 지급됩니다.

2) 영주권자 이상이지만 소셜 번호 있는경우 해당이 있을것으로 판단 되어 추가 확인 필요합니다.

3) 고령자의 경우 소셜 시큐리티 인컴 따로 보고 안해도 이미 소셜국에 정보 있어서 받을수 있습니다.

4) 2018 2019년도 세금 보고 자 기준이며, 신고 대상자분들은 신고 하시면 되겠습니다.

5) 혹시 신고 후에 이사를 가게 되어 주소지가 변경되는경우 Form 8822 로 주소 정보 업데잇 하세요

6) 소득세 신고를 해야 하는데 안하신분 지금이라도 신고 하시면 되겠습니다.

7) 2019년 소득세 신고 안해도 2020년에 크레딧으로 적용이 되므로 2020년 신고 자까지고 받을수 있는 환급 크레딧 입니다.

8) 수령 조건 소득 기준은 부부합산 신고(MFJ) 15만이하 개인(Sngle) 7만 5천 이하 이며 그 이상 소득은 100불당 5불씩 삭감 되겠습니다.

최종안이 통과되어 실행 방안이 확정되었으니, 4월 안으로 모두 해당 되시는 분들은 지급 될 것으로 예상 되지만,
실제 지급이이루어지면서 어느정도 미미한 수준의 변경이 있을수 있으니 참고 하시길 바랍니다

03/30/2020

Sales Tax Services

State and local tax authorities are looking to maximize sales tax collections. We can help you understand and manage your sales tax obligations and prepare sales tax returns in an efficient and timely manner.

03/29/2020

Business Entity Selection

The business entity—LLP, LLC, sole proprietorship, partnership, corporation, etc.— that you select for your business has enormous financial and tax implications. It is important that you make the right decision. We can explain each choice and its implications. As your business grows and changes, the type of business entity you choose may need to change also.